KeyCorp (NYSE: KEY) reported third-quarter results that topped Wall Street expectations, supported by robust revenue growth, improving credit quality, and a stronger net interest margin.
The Cleveland-based bank posted net income of $454 million, or $0.41 per diluted share, above analyst estimates of $0.38. Revenue reached $1.9 billion, slightly ahead of the $1.88 billion consensus and up 17% year-over-year when adjusted for the prior year’s securities portfolio repositioning.
Net interest income increased 4% sequentially, while the net interest margin expanded by 9 basis points to 2.75%. The improvement was attributed to a 2% quarter-over-quarter rise in average deposits and a 2-basis-point decline in total deposit costs to 1.97%.
Credit quality strengthened as nonperforming assets fell 6% sequentially. Net charge-offs held steady at 42 basis points, remaining within the company’s full-year guidance range of 40 to 45 basis points.
The Consumer Bank division generated net income of $152 million, more than doubling the $75 million earned in the same quarter last year. The Commercial Bank reported net income of $367 million, marking a 22.7% year-over-year increase.
Executives said the results reflected disciplined expense management and continued execution across both retail and commercial segments.
